Financial Data and Key Metrics Changes - Total company revenue for Q1 2025 was $179.3 million, down 4% year over year, primarily due to the wind down of COVID-era government subsidy programs [16] - Adjusted EBITDA increased by 2% to $44.3 million, supported by growth in the international segment [17] - Net loss for Q1 was $8.9 million, compared to a net loss of $6.3 million in the prior year [16][17] - Cash from operations increased by 55% to $35.9 million, reflecting improved working capital management [20] Business Line Data and Key Metrics Changes - International segment revenues increased to $94.5 million, up from $93.1 million year over year, driven by carrier services growth [18] - Adjusted EBITDA for the international segment rose to $32.4 million, an increase of 10% year over year [18] - Domestic segment revenues were $84.8 million, down 9.5% year over year, impacted by the conclusion of government subsidy programs [19] Market Data and Key Metrics Changes - The number of broadband homes passed by high-speed data services increased by 11% year on year to 427,000 households [8] - High-speed subscriber base grew by 2% year on year, indicating steady demand for broadband services [8] Company Strategy and Development Direction - The company aims to grow its fiber and fiber-fed business while transitioning from legacy consumer services [10] - Approximately $370 million in government-funded broadband infrastructure projects are underway, with over half expected to be completed in 2025 [11] - The focus remains on expanding high-speed broadband and business services in international markets while stabilizing the U.S. business around sustainable revenue streams [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but expressed confidence in operational performance and disciplined investment strategies [6] - The company reaffirmed its 2025 outlook, expecting revenue to align with 2024 levels, excluding construction revenue [22] - Management is monitoring trade and tariff developments, believing they can manage any near-term impacts within the existing financial outlook [13] Other Important Information - The company plans to shift the timing of its earnings release and calls by approximately one week to better align with its 10-Q filing [4][5] - Capital expenditures in Q1 totaled $20.8 million, a reduction from $36 million in the prior year's quarter, reflecting a shift towards increasing operational cash flow [21] Q&A Session Summary Question: How insulated is the company from trade and tariff impacts? - The company sources a significant portion of its fiber construction materials in the U.S., while electronics are monitored closely due to potential tariff impacts [31][33] Question: What is the company's exposure to foreign exchange rates? - The majority of international operations are in stable markets, with no significant fluctuations observed so far [35] Question: How does the company view the marketplace regarding private versus public multiples? - The company is observing the vibrant market dynamics and is focused on unlocking value for investors [36] Question: How will government funding impact financials? - Approximately half of the $370 million in government funding projects are expected to be completed in 2025, with significant monetization anticipated in 2026 and 2027 [40][41] Question: What is the outlook for the BEAD program? - The company is participating in the BEAD program, with funding dynamics being monitored closely, and expects delays in award timing [44][46] Question: What progress has been made in monetizing investments? - New leadership teams have been established, and there is growing carrier demand for access and transport services, indicating positive progress [49][51]

Cautionary Language Concerning Forward-Looking Statements First Quarter 2025 Earnings Call May 1, 2025 1 Safe Harbor and Non-GAAP Financial Measures Definition Q1 FY 2025 This presentation contains forward-looking statements relating to, among other matters, the Company's future financial performance, business goals and objectives, and results of operations, expectations regarding the transition of its US Telecom business, its future revenues, operating income, cash flows, network and operating costs, Adjus ...

Financial Performance - Consolidated revenues for Q1 2025 were $179.3 million, a decline of 4% from $186.8 million in Q1 2024[8] - Adjusted EBITDA increased by 2% to $44.3 million in Q1 2025, compared to $43.5 million in the same quarter last year[12] - Net loss attributable to ATN stockholders was $(8.9) million, or $(0.69) per share, compared to a net loss of $(6.3) million, or $(0.50) per share in Q1 2024[11] - Total revenue for Q1 2025 was $179.294 million, a decrease of 4.0% from $186.794 million in Q1 2024[37] - Communications services revenue was $174.031 million, down 4.0% from $181.268 million year-over-year[37] - Operating income for Q1 2025 was $2.667 million, compared to $4.574 million in Q1 2024, reflecting a decline of 41.7%[37] - Basic and diluted net income (loss) per share was $(0.69) for Q1 2025, compared to $(0.50) in Q1 2024[37] - Adjusted EBITDA for Q1 2025 was $44,339 million, compared to $43,518 million in Q1 2024, reflecting a year-over-year increase of 1.9%[45] - Total operating expenses for Q1 2025 were $176,627 million, up from $182,220 million in Q1 2024, indicating a decrease of 3.2%[41] - The company reported an operating income of $2,667 million for Q1 2025, compared to $4,574 million in Q1 2024, representing a decline of 41.8%[41] Cash Flow and Capital Expenditures - Net cash provided by operating activities increased by 55% to $35.9 million in Q1 2025, compared to $23.2 million in Q1 2024[19] - Capital expenditures for Q1 2025 were $20.8 million, down from $36.0 million in the prior year period[19] - Net cash provided by operating activities was $35.905 million for Q1 2025, an increase from $23.176 million in Q1 2024[39] - Capital expenditures for Q1 2025 were $20.832 million, down from $36.016 million in the same period last year[39] - The company reported a net change in total cash, cash equivalents, and restricted cash of $8.015 million for the quarter, ending with a total of $97.259 million[39] Assets and Liabilities - Total assets decreased to $1.707 billion as of March 31, 2025, from $1.727 billion at the end of 2024[35] - Total liabilities were $1.049 billion as of March 31, 2025, slightly down from $1.055 billion at the end of 2024[35] - Total current assets as of March 31, 2025, were $305,707 million, slightly down from $309,161 million at the end of 2024[41] - Total debt, including the current portion, was $562,384 million as of March 31, 2025, compared to $557,356 million at the end of 2024, showing a slight increase[48] - The company’s total assets were $1,707,449 million as of March 31, 2025, compared to $1,727,103 million at the end of 2024, reflecting a decrease[48] Debt Management - The net debt ratio was 2.52x as of March 31, 2025, compared to 2.54x at the end of 2024[18] - The net debt ratio improved to 2.52 as of March 31, 2025, down from 2.54 at the end of 2024, indicating better leverage management[48] Subscriber Growth - High-speed broadband homes passed increased by 11% to 427,300 in Q1 2025[16] - Total high-speed subscribers grew by 2% to 141,300 in Q1 2025[16] Future Outlook - For full year 2025, revenue excluding construction revenue is expected to align with last year's result of $725 million[23] - Adjusted EBITDA for full year 2025 is expected to be essentially flat with the prior year result of $184 million[23] Non-controlling Interests - The company reported a net income attributable to non-controlling interests of $2,459 million for Q1 2025, compared to $1,633 million in Q1 2024, indicating an increase of 50.6%[41]

Company Performance - ATN International reported a quarterly loss of $0.57 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.10, marking an earnings surprise of -470% [1] - The company posted revenues of $179.29 million for the quarter ended March 2025, slightly exceeding the Zacks Consensus Estimate by 0.35%, but down from $186.79 million a year ago [2] - Over the last four quarters, ATN International has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Outlook - The stock has increased approximately 8.9% since the beginning of the year, contrasting with the S&P 500's decline of -5.5% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $183.71 million, and for the current fiscal year, it is -$0.08 on revenues of $728.03 million [7] Industry Context - The Wireless National industry, to which ATN International belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact ATN International's stock performance [5][6]

Core Insights - ATN International, Inc. reported a 4% decline in consolidated revenues for Q1 2025, totaling $179.3 million compared to $186.8 million in Q1 2024, primarily due to the wind-down of subsidy programs in the US Telecom segment [6][9][4] - Adjusted EBITDA increased by 2% year-over-year to $44.3 million, supported by disciplined cost management despite lower revenues [9][4] - The company experienced a net loss of $8.9 million, or $0.69 per share, compared to a net loss of $6.3 million, or $0.50 per share, in the previous year [9][8] Financial Performance - Operating income decreased to $2.7 million in Q1 2025 from $4.6 million in Q1 2024, impacted by lower revenues and increased transaction-related charges [7][9] - Net cash provided by operating activities rose significantly by 55% to $35.9 million, up from $23.2 million in the prior year [17][9] - Capital expenditures for the quarter were $20.8 million, down from $36.0 million in the same period last year [17][9] Segment Performance - International Telecom segment revenue increased to $94.5 million, while US Telecom segment revenue decreased to $84.8 million [11][41] - The International segment maintained positive momentum with consistent demand for high-speed services, contributing to a year-over-year increase in Adjusted EBITDA [5][4] - The US Telecom segment is undergoing a transition strategy to align networks with business and carrier solutions, which is expected to impact near-term revenue but improve margins over time [5][4] Business Outlook - The company reaffirmed its full-year 2025 outlook, expecting revenues (excluding construction revenue) to align with last year's result of $725 million and Adjusted EBITDA to remain flat at approximately $184 million [22][19] - Capital expenditures for 2025 are projected to be in the range of $90 to $100 million, with the Net Debt Ratio expected to remain flat or slightly improve by the end of 2025 [22][19] - The focus for 2025 is on expanding cash flow and capturing benefits from strategic investments made over the past three years [19][4]

Group 1 - ATN International (ATNI) is a notable stock in the Computer and Technology sector, currently outperforming its peers with a year-to-date return of 6.4% compared to the sector average of -11.2% [4] - The Zacks Rank for ATN International is 1 (Strong Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 74.7% increase in the consensus estimate for full-year earnings over the past three months [3][4] - ATN International belongs to the Wireless National industry, which has an average year-to-date return of 9.7%, indicating that ATNI is slightly underperforming its industry [6] Group 2 - Another stock in the Computer and Technology sector, Spotify (SPOT), has shown a year-to-date return of 33.6% and has a Zacks Rank of 2 (Buy) with a 20.7% increase in the consensus estimate for its current year EPS over the past three months [5] - The Computer and Technology sector is ranked 8 in the Zacks Sector Rank, which measures the strength of individual sector groups [2]

Core Viewpoint - ATN International, Inc. will release its first quarter 2025 results on April 30, 2025, and will host a conference call on May 1, 2025, to discuss these results [1] Company Overview - ATN International, Inc. is a leading provider of digital infrastructure and communications services, operating in the United States and internationally, including the Caribbean region [4] - The company focuses on rural and remote markets with a growing demand for infrastructure investments [4] - ATN's services include advanced wireless and wireline connectivity, high-speed Internet, data services, fixed and mobile wireless solutions, video and voice services, as well as carrier and enterprise communications services [4]

Group 1: Company Overview - ATN International (ATNI) is a notable stock within the Computer and Technology sector, which consists of 611 companies and currently ranks 6 in the Zacks Sector Rank [2] - ATN International has a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] Group 2: Performance Metrics - Over the past quarter, the Zacks Consensus Estimate for ATNI's full-year earnings has increased by 63.7%, reflecting stronger analyst sentiment and an improving earnings outlook [4] - Year-to-date, ATN International has returned approximately 2.6%, significantly outperforming the average loss of 16.3% in the Computer and Technology sector [4] Group 3: Industry Comparison - ATN International is part of the Wireless National industry, which includes 10 stocks and currently ranks 25 in the Zacks Industry Rank; this industry has seen an average gain of 12.9% this year, indicating that ATNI is slightly underperforming its industry [6] - In contrast, InterDigital (IDCC), another stock in the Computer and Technology sector, has returned 4.6% year-to-date and belongs to the Wireless Equipment industry, which has a lower ranking (56) and has moved -6.4% this year [5][7]

Revenue and Income - As of December 31, 2024, total revenue reached $729.1 million, with International Telecom contributing $377.5 million and US Telecom contributing $351.6 million[222]. - The company recorded $74 million in construction revenue from the FirstNet Agreement with AT&T, expecting an additional $6 million as sites are completed[205]. - Operating income for International Telecom was $75.8 million, while US Telecom reported an operating loss of $44.4 million[222]. - The company reported a net loss before income taxes of $50.9 million for the year ended December 31, 2024[222]. - Total revenue for the year ended December 31, 2024, decreased by $33.1 million, or 4.3%, to $729.1 million from $762.2 million in 2023[233]. - Communication services revenue declined by $27.3 million, or 3.7%, to $707.8 million in 2024 compared to $735.1 million in 2023[233]. - The US Telecom segment's revenue decreased by $39.9 million, or 10.2%, to $351.6 million in 2024 from $391.5 million in 2023, primarily due to a reduction in Fixed revenues[228]. - Net loss attributable to ATN International, Inc. stockholders increased by $11.9 million, or 81.8%, to $26.4 million in 2024 from $14.5 million in 2023[233]. Operating Expenses - Total operating expenses amounted to $729.9 million, with significant costs in communication services and selling, general, and administrative expenses[222]. - Operating expenses for the year ended December 31, 2024, decreased by $19.2 million, or 2.6%, to $729.9 million from $749.0 million in 2023[233]. - Selling, general and administrative expenses decreased by $13.8 million, or 5.7%, to $228.9 million, reflecting ongoing cost reduction initiatives[260]. - Depreciation and amortization expenses decreased by $3.3 million, or 2.3%, to $138.3 million, with expectations of further declines due to reduced capital expenditures[268]. Revenue Breakdown - Fixed revenue decreased by $14.4 million, or 3.0%, to $458.4 million from $472.8 million for the years ended December 31, 2024 and 2023, respectively[240]. - Mobility revenue decreased by $2.5 million, or 2.2%, to $110.0 million for the year ended December 31, 2024, down from $112.5 million in 2023[236]. - International Telecom segment's Mobility revenue decreased by $1.3 million, or 1.2%, to $107.2 million for the year ended December 31, 2024[241]. - US Telecom segment's Mobility revenue decreased by $1.2 million, or 30.0%, to $2.8 million due to the conclusion of retail mobility services under its own brand[241]. - International Telecom segment's Fixed revenue increased by $7.0 million, or 2.9%, to $246.2 million, driven by network upgrades and expansions[242]. - US Telecom segment's Fixed revenue decreased by $21.4 million, or 9.2%, to $212.2 million, primarily due to the end of the Emergency Connectivity Fund and Affordable Care Programs[242]. - Carrier Services revenue decreased by $9.6 million, or 6.7%, to $133.3 million, with a notable decrease in US Telecom segment's revenue by $8.6 million, or 6.7%[246]. - Other Communications Services revenue decreased by $0.8 million, or 11.6%, to $6.1 million, attributed to a reduction in non-recurring project-related revenue[248]. - Managed Services revenue increased by $0.9 million, or 5.5%, to $17.4 million, with growth in both International and US Telecom segments[253]. Grants and Agreements - The company recognized $178.3 million in grants under various government programs aimed at deploying broadband connectivity in underserved areas[214]. - The company was awarded $150.2 million in construction grants, with $10.8 million disbursed in capital expenditures during the year ended December 31, 2024[212]. - The company expects to complete the FirstNet network build by the end of 2025, with ongoing maintenance and transport services provided to AT&T[205][206]. - The Verizon CMS Agreement will enhance wireless services in the southwestern United States, with an initial term ending in 2030[207][209]. Impairments and Charges - Goodwill impairment charge recorded during the year ended December 31, 2024, was $35.3 million[229]. - The company recorded a goodwill impairment of $35.3 million for the quarter ended September 30, 2024, due to a shift in operations and delays in network upgrades[274][275]. - The company recorded an impairment of $35.3 million for its US Telecom segment during the quarter ended September 30, 2024, due to a shift in operations and delays in network upgrades[380]. Cash Flow and Liquidity - Cash provided by operating activities was $127.9 million in 2024, an increase of $16.3 million from $111.6 million in 2023, reflecting improvements in working capital[304]. - Cash used in investing activities decreased by $61.3 million to $103.8 million in 2024, primarily due to increased cash inflows from government reimbursements[296]. - As of December 31, 2024, total liquidity was approximately $89.2 million, with $557.4 million in debt net of unamortized deferred financing costs[293]. - As of December 31, 2024, the outstanding amount under the 2023 CoBank Term Loan was $125.9 million, with $58.6 million outstanding under the 2023 CoBank Revolving Loan and $111.4 million available[313]. - The company has $111.4 million available under the CoBank Credit Facility, $89.0 million under the Alaska Revolving Facility, and $9.2 million under the Receivables Credit Facility as of December 31, 2024[370]. Debt and Financing - The 2023 CoBank Credit Agreement imposes a maximum Total Net Leverage Ratio of 3.25 to 1.0, measured quarterly[310]. - A two-year forward starting interest rate swap agreement was entered into in October 2023, with a notional amount of $50.0 million and a fixed SOFR rate of 4.896%[314]. - The 2024 Alaska Credit Facility includes a $300 million secured term loan and a $90 million revolving facility, with $300 million outstanding under the term facility as of December 31, 2024[319]. - The 2024 Alaska Credit Facility requires maintaining a maximum Consolidated Net Total Leverage Ratio of 4.75:1.00, stepping down to 4.50:1.00 in Q3 2027[325]. - The 2024 Alaska Term Facility requires quarterly principal payments starting in Q4 2026, with amounts of $1.875 million and $3.75 million due in specified periods[324]. - The 2024 Alaska Credit Agreement includes customary covenants and events of default, with Holdings and its subsidiaries as guarantors[328]. - Future minimum principal repayments for debt facilities are projected at $8.3 million in 2025, escalating to $371.2 million in 2029[361]. Interest and Tax - Interest income increased to $1.2 million for the year ended December 31, 2024, compared to $0.5 million in 2023, attributed to higher cash balances and interest rates[276]. - Interest expense rose to $49.5 million in 2024 from $42.7 million in 2023, driven by increased borrowings under credit facilities[278]. - The effective tax rate increased to 37.5% in 2024 from 31.9% in 2023, influenced by changes in unrecognized tax positions and valuation allowances[282][283]. Legal and Contingencies - The company has accrued $13.8 million for legal contingencies as of December 31, 2024, due to probable adverse outcomes from ongoing legal proceedings[381]. Future Projections - The company plans to invest approximately $90 million to $100 million in capital expenditures for network expansion and upgrades in 2025[300]. - For 2025, capital expenditures are expected to be approximately $90 million to $100 million, primarily for network maintenance and upgrades[360]. - The company expects to incur approximately $6 million in construction costs related to the FirstNet Agreement, primarily in 2025[363]. - The company has committed to pay approximately $37.0 million in software licensing and maintenance services in 2025[368].

The Zacks Wireless National industry is set to benefit from an accelerated 5G rollout and increased fiber densification driven by healthy demand trends. However, high capital expenditures for infrastructure upgrades, supply-chain disruptions amid the prolonged Russia-Ukraine war, Middle East tensions and high customer inventory levels have dented the growth prospects to some extent.  Against this backdrop, T-Mobile US, Inc. (TMUS) , United States Cellular Corporation (USM) and ATN International, Inc. (ATNI) ...